‘Our position is clear’: India seeks a more lucrative deal, rejects quick interim trade agreement with US

India has reportedly rejected a quick interim trade agreement with the US, opting instead to push for a more lucrative deal that secures greater benefits for its exporters and protects key domestic sectors, according to officials and trade analysts.

According to a report in Reuters, after months of negotiations, India and the US failed to finalise an interim trade agreement during US Trade Representative Jamieson Greer's visit to New Delhi last month, despite expectations on both sides that a limited deal was within reach.

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According to an Indian government official familiar with the talks, the negotiations stalled because Washington did not provide assurances on New Delhi's two key demands: preferential tariff treatment over competitors such as China and a commitment not to impose additional US tariffs after the agreement.

"Our position is clear – we don't intend to rush into a deal that is not on favourable terms or compromise on red lines like ceding ground on agriculture," an official told the news agency.

The Trump administration had been seeking quick trade concessions from India before introducing a fresh round of tariffs expected later this month. India's decision to hold out could expose its exports to higher US levies and extend uncertainty for businesses.

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A day after meeting Greer, Commerce and Industry Minister Piyush Goyal said any agreement with the US would proceed only if it offered India a clear advantage, signalling New Delhi's tougher negotiating stance despite the risk of additional tariffs.

Most Indian goods currently face a 10 per cent US tariff. However, the Trump administration is expected to impose steeper duties through investigations into alleged excess industrial capacity, an allegation India has rejected. Washington has also proposed tariffs of up to 12.5 per cent on dozens of countries, including India, over claims they failed to prevent trade in goods produced with forced labour.

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A US source familiar with the negotiations said Washington believes India must make its own concessions before receiving the preferential treatment it has sought. Another US official said discussions remain ongoing and an agreement is still expected, but acknowledged that India has at times been slow and bureaucratic, making a quick deal unlikely. 

India is also expanding market access elsewhere, with a free trade agreement with the UK set to take effect this month and an agreement with the European Union expected by early next year.